Published in Graphics

Japan Display needs a white knight

by on08 August 2017

Smartphone screen-making needs an overhaul

Japan Display is looking for funds from an outside investor to help finance an overhaul of its ailing smartphone screen-making business, including 3,500 job cuts.

 According to the Nikkei Business Daily, the liquid crystal display (LCD) maker is exploring capital tie-ups with strategic investors and buyout funds.

Japan Display said in a statement it planned to discuss restructuring at a board meeting on Wednesday.

The company has been hurt by its late entry into organic light-emitting diode screens (OLED) and fluctuating demand for Apple's iPhones.

A possible capital injection would come on top of $677 million in aid late last year from its main investor - the state-backed Innovation Network Corp of Japan.

INCJ helped form Japan Display from the ailing display units of Sony, Hitachi and Toshiba five years ago. While it briefly enjoyed a spike in sales thanks to orders from Apple, it has recently struggled to grow.

A source said last month that the company was also seeking about 100 billion yen from its main creditors to help pay for restructuring.

As part of its plans to be announced on Wednesday, Japan Display would slash more than 3,500 jobs, mainly in China and the Philippines, in a move that would contribute to a one-time loss of more than $1.35 billion in the year ending next March, the Nikkei said.


Last modified on 08 August 2017
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